PenCom Seeks 200% Gratuity, 100% Final-salary Pension For Police Retirees

The National Pension Commission (PenCom) has proposed a major overhaul of retirement benefits for Nigeria Police officers under the Contributory Pension Scheme (CPS), recommending a monthly pension equal to 100 per cent of an officer’s final salary for life and a gratuity payment of 200 per cent of annual emoluments, LEADERSHIP has learned.

Two sources with direct knowledge of the proposal — one at PenCom and another at Police Pensions Limited — confirmed the plan to our correspondent on condition of anonymity.

The measure is part of federal government efforts to address persistent agitation from retired police personnel who say CPS payouts are inadequate.

According to one of the sources, under the approved framework, retired police officers will receive a monthly pension equivalent to 100 per cent of their final salary for life, a demand that police personnel and retirees had consistently pushed for over the years.

The package also provides for gratuity payments amounting to 200 per cent of annual emoluments, a development expected to substantially improve retirement benefits for officers.

In the same vein, under the proposed arrangement, the federal government is expected to increase its monthly pension contribution for serving police officers from the current 10 to 20 per cent, while employee contributions will remain at 8 per cent.

The new arrangement, which includes a monthly pension equivalent to an officer’s last salary and increased gratuity benefits, is expected to strengthen financial security for retired personnel and boost the morale of officers still in active service.

The measure is expected to significantly improve Retirement Savings Account (RSA) balances, enhance pension payouts, and strengthen the long-term sustainability of the pension structure.

If approved by President Bola Tinubu, the augmentation plan for police personnel will reflect the government’s recognition of the police’s critical role in maintaining national security and public order, as well as the need to ensure officers’ dignity and stability after retirement.

Organised labour movement has consistently highlighted that the enhanced CPS framework offers a more sustainable and transparent alternative to both the old Defined Benefits Scheme and the uncertainties surrounding a complete exit from the contributory system.

They argue that strengthening the current pension structure and leveraging NPF Pensions Limited’s institutional experience would better guarantee the long-term welfare and financial security of serving and retired police personnel.

Police pensioners who have been protesting against the Contributory Pension Scheme insisted that the scheme, which requires both employers and employees to contribute monthly into Retirement Savings Accounts (RSAs) managed by Pension Fund Administrators (PFAs), has worsened their welfare.

Some retirees claim they receive between N30,000 and N80,000 monthly, while others say lump-sum retirement benefits are grossly inadequate.

LEADERSHIP checks indicate that a major source of anger among police retirees is the perceived disparity between the police and other security agencies.

For instance, the military, Department of State Services (DSS), and some intelligence agencies were exempted from the CPS and returned to more favourable pension arrangements, while the Nigeria Police Force remained under the scheme.

Recall that President Tinubu, through the National Assembly, had approved N758 billion Federal Government of Nigeria bond to clear all pension backlog and arrears for all retirees, including Police, in 2025.

The initiative was to clear the backlog of pension arrears dating back to 2012.

Pension advocates have argued that instead of scrapping the CPS, the government should increase police welfare, review pension calculations, and provide supplementary retirement benefits for officers.